Engineers and MDBs convene to discuss scaling up adaptation finance

At the start of 2025, ICSI, in collaboration with the Global Covenant of Mayors for Climate and Energy (GCoM) and the Institution of Civil Engineers (ICE), hosted a pivotal roundtable discussion that brought together leaders from the engineering and multinational development bank (MDB) communities. Held virtually on January 14th, the session was hosted in two parts to capture views from a wider range of geographies. This event marked the culmination of a series aimed at fostering dialogue on scaling up adaptation finance for infrastructure.

Kindly sponsored by Boston Consulting Group (BCG) and Mott MacDonald, the roundtable was a call to action for engineers and MDBs to collaborate more effectively, with the goal of driving climate adaptation and low-carbon finance initiatives. It focused on addressing barriers, identifying opportunities, and breaking down silos to ensure a holistic, integrated approach to climate resilience.

11 Representatives from MDBs, including the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Climate Investment Fund (CIF), Corporación Andina de Fomento (CAF), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IADB) and the World Bank, joined in discussion with 18 engineers from the world’s biggest corporate firms, civil society, academia and professional associations.

Creating Enabling Environments for Adaptation Finance

MDBs have a critical role in creating enabling environments for adaptation finance by leveraging their convening power to align national governments, private investors, and technical experts. By supporting the development of adaptation standards, MDBs help establish regulatory certainty, reducing investment risks and encouraging private-sector participation. Additionally, MDBs can work with governments to address capacity gaps among policymakers and the technical community and improve understanding of standards, including development and enforcement, at the country level. A range of mechanisms can be deployed, from result-based or performance-based project finance to policy reforms and instruments such as National Adaption Plans.

One of the central themes that emerged was the need for private sector involvement in adaptation financing. Participants agreed that MDBs cannot drive the necessary investments alone and that collaboration with the private sector is essential for mobilising the scale of funding required. To move toward a blended finance model, policy frameworks for Public-Private Partnership (PPP) projects must integrate climate adaptation and resilience considerations from the start.

Participants also highlighted the need to address climate risk earlier in the project lifecycle. Currently, many projects are already well into development by the time funding is secured, often reaching the procurement phase before engineers become involved. In advisory roles, engineers may be tasked with due diligence, such as Environmental Impact Assessments (EIAs) or engineering design, on projects that are already far along, leaving limited opportunity to influence design with adaptation and resilience considerations. This approach restricts the ability to effectively integrate adaptation measures. A shift is necessary – one that prioritises a comprehensive understanding of the risk landscape before decisions on individual projects are made.

Integrating Climate Risk into Investment Decisions

It was agreed that both engineers and MDBs have crucial roles to play in accelerating the integration of climate risk assessments (CRAs) into investment decisions. This involves ensuring that all projects from the outset include mandatory physical CRAs. By standardising these assessments, MDBs can help guide investments toward more resilient infrastructure projects, fostering long-term sustainability.

However, the lack of standardised data and communication barriers across sectors remain significant challenges. Participants discussed the fragmented nature of adaptation metrics and standards, which hinders effective risk assessment and adaptation planning. Aligning on clear definitions of success and metrics for adaptation is essential for streamlining efforts and ensuring greater collaboration across institutions.

A multistakeholder approach is essential for building long-term capacity to implement climate resilience across the infrastructure lifecycle. Different stakeholders, including governments, engineers, financial institutions, and communities,  have diverse needs, and ensuring inclusive collaboration will be critical to delivering effective adaptation solutions.

Systemic Approaches to Adaptation

A critical shift discussed at the roundtable was the need to move away from a project-by-project approach to a more systematic, pipeline-based planning process. Participants noted that while many successful projects are implemented at the city or regional level, they often lack coordination. This siloed approach misses opportunities to deliver synergies across projects that could enhance overall resilience.

Creating a ‘systemic pipeline’ of projects where various initiatives work together is essential for scaling up climate adaptation efforts. The roundtable highlighted the importance of integrated planning, where stakeholders from different sectors, including city councils, transport agencies, and environmental bodies, collaborate to achieve the best outcomes. Additionally, we need to shift from retrofitting CRAs in project pipelines to risk-based planning that uses a whole lifecycle approach.

However, several challenges remain. Project-specific quantification of adaptation benefits can be complex, making it difficult to measure resilience outcomes and secure funding. Additionally, standalone climate resilience projects remain rare, as adaptation is often treated as a secondary component rather than a primary investment driver. This is partly due to capacity constraints among government decision-makers and project owners, who may lack the tools and technical expertise to prioritise resilience. To bridge this gap, stronger connections between technical experts and policymakers are needed, ensuring that adaptation and resilience considerations become an integral part of investment decisions.

Strengthening Collaboration for Adaptation

The insights shared during this roundtable underscore the importance of collaboration between MDBs, engineers, the private sector, and local communities. As we look ahead, ensuring that adaptation finance reaches its full potential will require continued dialogue, the removal of barriers, and a concerted effort to align policies, metrics, and investment strategies. To continue the momentum, the roundtable concluded with a call for deeper integration and stronger leadership in driving these changes. It is clear that only through a collective effort can we create the enabling environments necessary for large-scale climate resilience in infrastructure.